Analysis shows the inflation hedging benefits of long-term investments in commodities, which have a low correlation over time with equities. Diversification with a broad basket of commodities is best to smooth out the volatilities of individual commodities, such as oil or gold.
In building emerging market allocations into a portfolio, investors should adopt a well-structured investment process, evaluate those allocations at the portfolio level, pursue constrained optimization techniques and use a risk model to continuously control their risk exposures.
The authors, in travels with four clients and friends, explore the business side of Africa, conducting 20 meetings with companies and local organizations in Zambia, Zimbabwe and Malawi. These countries are all close to the banks of the Zambezi River, and their fates are linked to it.
A moderate level of economic confidence has returned to a number of segments of the economy. If the current trajectory of confidence indicators remains intact, as we believe it will, 2011 is likely to be a reasonably constructive year for both economic growth and risky asset performance.
It is interesting to note that more than 13% of equities now offer dividend yields in excess of the yield available on the average corporate bond. Could equities be a better source of income? While this is debatable, we think the discussion has merit and investors should be inclined to take more equity-like risk based on relative values.
Remain diversified within the fixed income sector, allocating assets to international and high-yield bonds where appropriate, for example, to help smooth investment performance. Opportunities exist for these sectors to perform comparatively better within the context of a rising U.S. interest rate environment.
The low interest rate environment, depressed asset values and current transfer tax rules seem to offer superior wealth transfer planning opportunities. However, time may be of the essence as the window of opportunity created by these three conditions may be short-lived.
True wealth transfer focuses on the synergies of various forms of family capital. The authors support shifting the definition of "success" from the singular transfer of financial wealth to helping the family develop a plan that considers the family's human capital and its relationship to the sustainability of the family's financial capital.
This organizer, developed by a FOX Thought Leaders Council™ member, assists individuals in the collection and organization of personal and financial information essential to the estate planning process.
Modern dynasty trust laws, such as those in South Dakota, provide the settlor with the flexibility to deal with uncertainty while maintaining the benefits of intergenerational planning. Directed trusts, trust protectors, special purpose entities and other state statutory trust provisions provide the flexibility that has made the modern dynasty trus...
Parents who are concerned about family harmony after their deaths are wise to address the issues of estate equalization as a key element of their estate and business planning. Most of the problems that would create disharmony among their children can be handled with careful thought and with wills, trusts and business agreements that clearly dictate...
This paper provides answers to such questions as what is an intentionally defective irrevocable trust; what is meant by defective; when is this type of trust appropriate; how does an installment sale to an intentionally defective irrevocable trust work, and what are the tax considerations?
Because of the uncertainty as to what the new congressional bipartisan joint committee will do, it is important that individuals who want to take advantage of existing estate planning techniques talk with their advisors now to find out whether such planning is appropriate based on their circumstances.
Changes in tax laws have made the long-term, or dynasty, trust a particularly attractive means to transfer wealth to multiple generations free of estate taxes. However, the expiration of certain exemptions in 2013 means individuals need to act soon to realize the maximum benefit of these trusts.
The 2010 Tax Act reinstated the gift, estate and generationskipping transfer taxes that were repealed earlier in 2010. The reinstatement comes with increased transfer tax exemptions and favorable rates for 2011 and 2012. Consequently, the opportunity for making new or additional gifts to trusts has never been more favorable.